Advertising, Tracking and Privacy
Advertising, Tracking and Privacy
Advertising, Tracking and Privacy
8
Advertising, Tracking,
and Privacy
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Overview....................................................................................8–3
Online Behavioral Advertising.......................................................8–5
Regulation, Enforcement, and Compliance......................................8–8
Generally........................................................................8–8
Best Practices and Industry Guidelines...............................8–11
California Online Privacy Protection Act............................8–16
Electronic Communications Privacy Act.............................8–17
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Overview
Q 8.1 What is online tracking, and how does
it work?
Basic online tracking records the browsing history of a user. More
sophisticated tracking technology can record things like time spent
on a page as a means of judging user engagement. Once that infor-
mation is collected, analytic software can search the data to discern
patterns in a user’s activity that can be used to provide targeted
advertisements.
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Several states have enacted laws governing data collection and use
in their jurisdictions. But because the Internet is not bound by state
borders, these laws are an effective “floor” for all widely available sites
that collect their users’ data. One key state statute, California Online
Privacy Protection Act (known as “CalOPPA”), is discussed in more
detail below.12 California has also recently enacted the Californian
Consumer Protection Act (CCPA), which provides further protection
to consumers and their online data. (See chapter 9.) Most other state
laws either provide a lower threshold or closely mirror one of the four
federal statutes discussed here. Legislation and regulation regarding
interconnected devices remains in its infancy, but recent activity sug-
gests that Congress and government agencies may issue new stan-
dards in this area.13
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for a legitimate business need. Going further than the NAI, the DAA
suggests that all data collected for OBA purposes should be ano-
nymized to render them non-PII.
The DAA’s fifth principle, echoing the third, states that consent
should be obtained from users whenever there is a material change to
a site’s collection or use of OBA.
Sixth, the DAA has separate principles relating to three categories
of “sensitive data”: children’s data, health data, and financial data. The
DAA expressly references the federal COPPA standard regarding chil-
dren’s data (discussed in more detail in chapter 3). The DAA suggests
that specific consent be obtained for the use of health and financial data.
Seventh, and finally, the DAA suggests that members engage in
continual monitoring of their use of user data, including the nature of
their disclosures of such data.
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the user data that makes the provision of OBA possible, and to pro-
vide users with a disclosure of how to request that they not be tracked
in the future.
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website and user) consents to the collection of data for OBA, this cre-
ates a complete bar to recovery under the civil damages provision of
the ECPA.
The “contents” of communications under the ECPA can generally
be thought of as information that discloses the substance or purpose
of the communication. Private plaintiffs have used the ECPA to bring
suits against website operators that provide OBA via third parties.
Although the plaintiffs bringing these claims have generally been
unsuccessful, advertisers may consider the cost of defending these
lawsuits when evaluating their current practices and deciding on
whether to adopt new ones.
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*
CASE STUDY: In re Google, Inc. Cookie Placement
Consumer Privacy Litigation
In the putative class-action case,39 the district court dismissed
a CFAA claim because the plaintiffs failed to identify any dam-
age to the functionality of their computers. Moreover, the court
refused to hold that the mere disclosure of personal informa-
tion equates to economic damages for purposes of reaching the
CFAA’s $5,000 threshold.
These aspects of the decision were upheld on appeal; the appel-
late court likewise ruled that the Wiretap Act (the ECPA) is not
violated when cookies are used for data collection with one-
party consent. The appellate court reinstated a state-law intrusion
claim based on allegations that Google had overridden users’
cookie-blocker settings while promulgating a policy that users
could set their browsers to refuse cookies.
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though it did not itself tender the videos, because the premium paid
for a smart TV indicated that consumers were paying for added video
streaming functionality even if they also paid other companies for the
actual videos.47
The violation of VPPA arises from disclosing information about
users’ viewing history. If a company simply provides video content
online without collecting any data that identifies who watches each
video, it would be virtually impossible for it to violate the VPPA. This
was the case in In re Nickelodeon, where the plaintiffs alleged that
Viacom collected, and disclosed to Google, facially anonymous UUIDs,
a child’s gender and age, and information about the user’s computer.
The court held that none of that information, on its own, was PII under
the VPPA and therefore dismissed the VPPA claim—“without more,”
the information did not actually identify users, and it did not suffice to
speculate about how Google might find other means of identification.48
The VPPA becomes a relevant consideration once a company
begins collecting PII. Purely anonymous data may not be subject to the
VPPA, since, by its terms, the disclosure must “identify a person.” At
this writing, it remains an open question whether VPPA plaintiffs will
gain traction with the theory that they can state a claim by pleading
that facially anonymous data can be matched to other data in order
to make the statutorily required identification. The majority view at
this point is that such a claim fails. One court, in Yershov v. Gannett
Satellite Information Network, Inc., ruling in unusual circumstances
involving geolocation data, has held that anonymous identifiers may
be VPPA-actionable PII.49 In contrast, the Ninth Circuit has adopted the
Third Circuit’s approach in In re Nickelodeon by applying the “ordi-
nary person” test in such cases, under which personally identifiable
information is defined as information that readily permits an ordinary
person to identify a particular individual as having watched certain
videos.50
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CASE STUDY: Yershov v. Gannett Satellite Information
Network, Inc.
In Yershov v. Gannett Satellite Information Network, Inc.,55 plain-
tiffs alleged that the defendant violated the VPPA by offering a
mobile application with video content that, every time a user
viewed a video, automatically sent the title of the video, GPS
coordinates of the viewing device, and certain device identifiers
to a third-party analytics service, without obtaining user consent.56
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Data Brokers
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Notes to Chapter 8
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22. Lenovo Reaches Proposed 8.3 Million Settlement Agreement, Fed. Trade
Comm’n (July 16, 2018).
23. Lenovo Settles FTC Charges it Harmed Consumers with Preinstalled Software
on its Laptops that Compromised Online Security, Fed. Trade Comm’n (Sept. 5, 2017),
https://www.ftc.gov/news-events/press-releases/2017/09/lenovo-settles-
ftc-charges-it-harmed-consumers-preinstalled.
24. Fed. Trade Comm’n, Self-Regulatory Principles for Online Behavioral
Advertising (2009), www.ftc.gov/sites/default/files/documents/reports/federal-
trade-commission-staff-report-self-regulatory-principles-online-behavioral-advertising/
p085400behavadreport.pdf.
25. In addition to the NAI and DAA frameworks discussed below, see, e.g.,
Privacy Resources, Direct Mktg. Ass’n [DMA], https://thedma.org/resources/privacy-
resources/ (last visited May 15, 2017); Self-Regulatory Principles for Online
Behavioral Advertising, Interactive Advert. Bureau [IAB] (Apr. 7, 2014), www.iab.
com/news/self-regulatory-program-for-online-behavioral-advertising.
26. See About the NAI, Network Advert. Initiative [NAI], www.network
advertising.org/about-nai/about-nai (last visited May 6, 2020).
27. See The NAI Code of Conduct, Network Advert. Initiative [NAI], www.
networkadvertising.org/code-enforcement/code (last visited May 15, 2017).
28. See About the Digital Advertising Alliance, Dig. Advert. All. [DAA], www.
aboutads.info/associations (last visited May 15, 2017).
29. See DAA Self-Regulatory Principles, Dig. Advert. All. [DAA], www.digital
advertisingalliance.org/principle (last visited May 15, 2017).
30. Compliance Warning: Interest-Based Video Ads Require Transparency,
Choice, Advert. Self-Regulatory Council (Dec. 11, 2017), https://www.bbb.org/
globalassets/local-bbbs/council-113/media/behaviorial-advertising/compliance-
warning-cw-05-2017-video-ads.pdf.
31. See https://clearcode.cc/blog/behavioral-targeting/.
32. See Calif. Do-Not-Track Law Will Have National Impact, Law360 (Dec. 12,
2013), www.law360.com/articles/494614/calif-do-not-track-law-will-have-national-
impact.
33. CalOPPA, Cal. Bus. & Prof. Code §§ 22575–79.
34. Fed. Trade Comm’n, Protecting Consumer Privacy in an Era of Rapid
Change: Recommendations for Businesses and Policymakers (Mar. 2012), www.ftc.
gov/sites/default/files/documents/reports/federal-trade-commission-report-
protecting-consumer-privacy-era-rapid-change-recommendations/120326
privacyreport.pdf; Fed. Trade Comm’n, Privacy Online: Fair Information Practices
in the Electronic Marketplace (May 2000), www.ftc.gov/sites/default/files/
documents/reports/privacy-online-fair-information-practices-electronic-market
place-federal-trade-commission-report/privacy2000text.pdf; CalOPPA, Cal. Bus. &
Prof. Code §§ 22575–79.
35. 18 U.S.C. § 2510 et seq.
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61. See Nick Summers, Google Loses Bid to Block Safari Privacy Lawsuit in the
UK, Endgadget (Mar. 27, 2015), www.engadget.com/2015/03/27/google-safari-
court-appeal/; Google, Inc. Cookie Placement, 988 F. Supp. 2d 434.
62. Julie Brill, Comm’r, Fed. Trade Comm’n, Keynote Address at 23rd
Computers Freedom and Privacy Conference: Reclaim Your Name (June 26, 2013),
www.ftc.gov/sites/default/files/documents/public_statements/reclaim-your-name/
130626computersfreedom.pdf.
63. See Fed. Trade Comm’n, Cross-Device Tracking: An FTC Staff Report
(Jan. 2017), www.ftc.gov/system/files/documents/reports/cross-device-tracking-
federal-trade-commission-staff-report-january-2017/ftc_cross-device_tracking_
report_1-23-17.pdf.
64. See About the Self-Regulatory Principles for Multi-Site Data, Dig. Advert.
All. [DAA], www.aboutads.info/msdprinciples (last visited May 15, 2017).
65. See Fed. Deposit Ins. Corp. [FDIC], Fin. Inst. Letter FIL-56-2013, Social
Media: Consumer Compliance Risk Management Guidance (Dec. 11, 2013), www.
fdic.gov/news/news/financial/2013/fil13056.pdf.
66. Fraley v. Facebook, Inc., 830 F. Supp. 2d 785 (N.D. Cal. 2011).
67. Id. at 790.
68. Patrick Howell O’Neill, Tate Ryan Mosley & Bobbie Johnson, A Flood of
Coronavirus Apps Are Tracking Us. Now It’s Time to Keep Track of Them, MIT Tech.
Rev. (May 7, 2020), www.technologyreview.com/2020/05/07/1000961/launching-
mittr-covid-tracing-tracker/.
69. Jay Stanley & Jennifer Stisa Granick, The Limits of Location Tracking in an
Epidemic, ACLU (Apr. 8, 2020), www.aclu.org/report/aclu-white-paper-limits-
location-tracking-epidemic.
70. COVID-19 Community Mobility Reports, Google (last visited July 7, 2020),
www.google.com/covid19/mobility/; see also Kate Cox, Google Knows If Everyone
in Your County Is Actually Staying Home or Not, Ars Technica (Apr. 3, 2020, 1:58 PM),
https://arstechnica.com/tech-policy/2020/04/google-knows-if-ever yone-
in-your-county-is-actually-staying-home-or-not/.
71. Nigel Smart, What the DP-3T Initiative Means for Privacy, Unbound (Apr. 28,
2020), www.unboundtech.com/dp-3t-initiative-means-privacy/ (“The notion of
‘seen’ can be modified to deal with medical knowledge (e.g., the phone might only
record identifiers seen over a two minute period, or with a strong signal denoting
proximity).”).
72. Id.
73. Allison Grande, Apple, Google Unveil Joint Effort to Track COVID-19 Spread,
Law360 (Apr. 10, 2020, 9:40 PM), www.law360.com/articles/1262651/apple-google-
unveil-joint-effort-to-track-covid-19-spread.
74. Darrell Etherington, MIT Develops Privacy-Preserving COVID-19 Contact
Tracing Inspired by Apple’s ‘Find My’ Feature, TechCrunch (Apr. 9, 2020, 6:48 AM),
https://techcrunch.com/2020/04/09/mit-develops-privacy-preser ving-
covid-19-contact-tracing-inspired-by-apples-find-my-feature/.
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75. Darrell Etherington, Apple and Google Release First Seed of COVID-19
Exposure Notification API for Contact Tracing App Developers, TechCrunch (Apr. 29,
2020, 11:00 AM), https://techcrunch.com/2020/04/29/apple-and-google-release-
first-seed-of-covid-19-exposure-notification-api-for-contact-tracing-app-developers/
?guccounter=1.
76. Darrell Etherington & Natasha Lomas, Apple and Google Update Joint
Coronavirus Tracing Tech to Improve User Privacy and Developer Flexibility,
TechCrunch (Apr. 24, 2020, 10:15 AM), https://techcrunch.com/2020/04/24/
apple-and-google-update-joint-coronavirus-tracing-tech-to-improve-user-privacy-
and-developer-flexibility/.
77. Anthony Ha, Daily Crunch: Apple and Google Begin Releasing Their
Exposure Notification API, TechCrunch (Apr. 30, 2020, 10:10 AM), https://
techcrunch.com/2020/04/30/daily-crunch-apple-and-google-begin-releasing-their-
exposure-notification-api/.
78. Douglas Busvine & Andreas Rinke, Germany Flips to Apple-Google
Approach on Smartphone Contact Tracing, Reuters (Apr. 26, 2020, 1:51 AM), www.
reuters.com/article/us-health-coronavirus-europe-tech/germany-flips-to-apple-
google-approach-on-smartphone-contact-tracing-idUSKCN22807J. Some Asian
countries have also adopted the Bluetooth model. See, e.g., Dean Koh, Singapore
Government Launches New App for Contact Tracing to Combat Spread of COVID-19,
MobiHealthNews (Mar. 20, 2020, 10:38 AM), www.mobihealthnews.com/news/
asia-pacific/singapore-government-launches-new-app-contact-tracing-combat-
spread-covid-19.
79. Busvine & Rinke, supra note 78.
80. Sara Morrison, The United Kingdom’s Contact Tracing App Could Be a
Preview of America’s Digital Tracing Future, Vox (May 6, 2020, 1:20 PM), www.vox.
com/recode/2020/5/6/21247955/united-kingdom-nhs-contact-tracing-app.
81. Natasha Lomas, UK Eyeing Switch to Apple-Google API for Coronavirus
Contact Tracing—Report, TechCrunch (May 7, 2020, 4:33 AM), https://techcrunch.
com/2020/05/07/uk-eyeing-switch-to-apple-google-api-for-coronavirus-
contacts-tracing-report/.
82. 45 C.F.R. § 160.103 (2020).
83. Id.
84. David Strauss, Wakaba Tessier, Megan Herr & Erica M. Ash, U.S. Privacy
Law Implications for Employers Considering Employee Contact-Tracing Apps, Byte
Back (Apr. 20, 2020), www.bytebacklaw.com/2020/04/u-s-privacy-law-implications-
for-employers-considering-employee-contact-tracing-apps/.
85. Mobile Privacy Disclosures: Building Trust Through Transparency, Fed.
Trade Comm’n, at ii (Feb. 2013), www.ftc.gov/reports/mobile-privacy-disclosures-
building-trust-through-transparency-federal-trade-commission; see also Scott Pink
& John Dermody, Where Will the Needle Land? COVID-19 Contact Tracing v. Protecting
Personal Privacy, Law.com (June 12, 2020, 7:00 AM), www.law.com/legaltech-
news/2020/06/12/where-will-the-needle-land-covid-19-contact-tracing-v-
protecting-personal-privacy/.
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86. Privacy Online: A Report to Congress, Fed. Trade Comm’n (June 1998),
www.ftc.gov/sites/default/files/documents/reports/privacy-online-report-
congress/priv-23a.pdf.
87. Patrick McKnight, Could Contact Tracing Technology Violate the Fourth
Amendment?, ABA (June 11, 2020), www.americanbar.org/groups/business_law/
publications/committee_newsletters/cyberspace/2020/202006/contact-tracing/.
88. Cal. Civ. Code §§ 1798.100–.115 (West). For more on the requirements of
the CCPA, see chapter 9.
89. Scott Pink & John Dermody, Where Will the Needle Land? COVID-19 Contact
Tracing v. Protecting Personal Privacy, Law.com (June 12, 2020, 7:00 AM), www.law.
com/legaltechnews/2020/06/12/where-will-the-needle-land-covid-19-contact-
tracing-v-protecting-personal-privacy/.
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